Almost any business manager will affirm that sound organization is highly important to business success. Many will characterize organization as the f… - Louis A. Allen

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Almost any business manager will affirm that sound organization is highly important to business success. Many will characterize organization as the foundation upon which the whole structure of management is built. Unfortunately, there are many differences of opinion as to the precise nature of organization, as of other aspects of management; and there is even less concurrence on what specific work must be accomplished in organizing.

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About Louis A. Allen

Louis Alexander Allen (born Oct. 8, 1917) is an American management consultant and management author, known from his early work on management and organization.

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Objectives are goals established to guide the efforts of the company and each of its components. Effective management is always management by objectives. An organization can grow and change in an orderly and progressive manner only if well-defined goals have been established to guide its progress. Not only must there be an objective for the total organization, but, since each component can accomplish only limited work, there should be spelled out division and departmental goals which serve as specific guides for subordinate units. These enable individual managers to operate with maximum freedom but always within the framework of over-all company objectives. Unless such goals are established, there is likely to be haphazard activity, uneconomical commitment of capital funds, poor utilization of people, and mediocre operating results over the long term.

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New and dynamic concepts of management and organization are evolving which are a measure of the span and the challenge of the business of tomorrow. These concepts are predicated upon the assumption that management is an identifiable, measurable, and transferable activity and that it can be mastered as can any other skill. Many of the older concepts of management and organization have been put to question and abandoned or replaced. Much of this new thinking has taken place so quietly and unobtrusively, even secretly, that it has not generally been reported. The fact is that some companies consider their methods of management and organization as much a competitive factor as marketing methods, applied research, or new production processes. And often they guard such information as carefully as other classified data about their businesses

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